State high court denies review in Alameda's Measure H suit

ALAMEDA -- A ruling that struck down parts of a parcel tax that voters passed to support local schools will stand after the California Supreme Court decided not to review the case, setting the stage for some taxpayers to receive refunds.

The state high court denied a petition for review Wednesday by the Alameda Unified School District over a ruling in March that struck down the Measure H's rate structure and found only the flat $120 rate that residential owners paid was valid.

George Borikas and other commercial property owners sued the Alameda school district over the measure, which Alameda voters passed in 2008, saying it was unfair because it taxed them differently than residential owners.

Owners of commercial properties of less than 2,000 feet were taxed at $120 annually under the measure -- the same as residential property owners. But those owning parcels more than 2,000 square feet were taxed at 15 cents a square foot, capped at $9,500 annually.

The ruling in the Alameda case is expected to have far reaching consequences for school districts throughout the state as similar lawsuits over parcel tax structures have been filed in Yolo, Contra Costa and Los Angeles counties.

"We believe we are heading in the right direction toward refunding tax-payers their money," David Brillant, the attorney for the property owners, said Wednesday.

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Taxes collected between 2008 and 2011, when Alameda voters passed a replacement tax known as Measure A, may now be refunded, which district officials said will undermine local schools.

"We are disappointed the California Supreme Court declined to review this case," Superintendent Kirsten Vital said. "The decision of the Court of Appeal that now governs this case could be a significant blow to our budget with many negative consequences for students, teachers and staff here in Alameda, as well as for other districts and local agencies across the State."

But Vital also said district officials will legally challenge moves to provide refunds, and will work with state elected officials to secure better clarification on the laws surrounding parcel taxes.

Among those who joined Borikas in the lawsuit against the school district over Measure H was Ed Hirshberg, who owns the building that houses the Alameda Journal, a Media News publication.